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If you want to make a CAW league you first have to decide what to name your league is original and hasn't been used because using a name that another league has already chosen will result in a lot of arguments over which is the real one.
Also, decide the base of your roster from the 3 base types of rosters...

Fantasy: Fantasy League (League with people from comics, TV, the internet, etc.)

You have to make the roster. It's best to use people who haven't been used in CAW as some people are being overused and they may be stale. Make sure the CAW is good as bad CAWS are looked down upon by most viewers. Remember not to have the default morphing as it would make your roster look like they're all related, and you don't care, and if you don't care, the viewers won't either And It would be Best to use characters that people know.

In order to record footage you would either need a Capture Card, (Dazzle, Hauppague, etc.) or a DVD Recorder. If you are using an emulator (No Mercy) it would be best to use Fraps. And Recording with a camcorder is not recommended. Also you can use community ceartions on the newer games so yuou dont need to record

Next, you may want to have commentary on your league, but there are many factors that go into this. If you are prepared to commentate for your league you have to make sure you don't act bored or do the infamous "silent scream". Most commentators who's voice haven't broken are usually looked down upon as well. If you feel you meet any of these requirements it's best to practice commentating, get someone else to commentate or leave the shows uncommentated. .

Another point is editing. Make sure to edit all the loading screens out as people hate waiting for something that could have been edited out. If you plan to put music for your league through editing make sure the music isn't too loud. You don't have to have the fanciest video editing programs, Windows Movie Maker, is a video editing software which many people in CAW use.

Now you have to decide some storylines you make with your roster that isn't obvious and will interest the viewers. Make sure matches in your weekly shows build up to your CPV or else you'll have storylines that don't make sense. Don't waste Gimmick Matches (Hell in a Cell, Money in the Bank, etc.) on weekly shows as it's best to use those during the CPVs. Don't use repetitive move as it makes the match boring, AND DON'T OVERUSE FINISHERS! Don't make matches too long as people will get bored (unless it's a CPV). If you can't do a spot in a match, DON'T KEEP DOING IT! If you do people will once again be bored. If you want to use the spot practise it until you perfect it.

Finally, to start off your CAW League people usually begin with a tournament or a Royal Rumble to decide the World Champion. If you don't want to do these then just start off with different matches and choose people you want to be Main Eventers, Mid Carders, Low Carders & Jobbers.Also Create Your Own Names For Your Titles.